TOUR - Earnings call transcript Q2 2022

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Operator

Hello, and thank you for standing by for Tuniu's 2022 Second Quarter Earnings Conference Call. [Operator Instructions] After management's prepared remarks, there will be a question-and-answer session. Today’s conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary. ahead. go Please

Mary Chen

And conference operator. our second XXXX Thank welcome earnings call. quarter you, to

on are Chen, Joining Founder, call the me today Chief Officer; Controller. Chairman Donald Executive and Financial Anqiang Tuniu's and Tuniu's Yu,

today's performance the financial management highlights of for discuss updates, second business For operation agenda, and XXXX. quarter will

non-GAAP forward-looking you discussions our applies as call, the to Harbor continue, measures. measures. statements. this GAAP in includes statement financial make call Also, we certain to directly most reconciliation Before release, to earnings refer I of this contains we refer comparable which to Safe of our press which Please will release, measures non-GAAP earnings a

now our Yu. all Chief please mentioned in conference Donald during like that Founder, Executive the Officer, this would are to over call Chairman otherwise Finally, turn note and to stated, figures call I unless RMB.

Donald Yu

Welcome Good conference Mary. day, you, Thank our everyone. earnings XXXX second call. quarter to

setback in severe better among we relaxed policies, the second year. GMV increasing rapid The restrictions. was more industry the In for June, public as tourism saw quarter, in XXX% month-over-month of enthusiasm COVID-XX. exceeded while demand July, growth as benefited from high the remained second breakout Tuniu’s also and with since travel XXXX. The such April initial despite were outbreaks of the half travel resurgence recovery and May, in During most first controlled. a travel the by the variable the total June during impacted Since quarter.

compared of we and focus and high recover By downturns booking the volume products popular services providing July to volume to industry July several Tuniu’s increased are starting quality during destinations significantly in season travel weather in month. on with challenges, during times keeping the quickly previous peak rebound. external able booking the With our doubling for

it pandemic and self-operated high and quality to for high design, was key level the remaining diverse to and customer reputation of at we process our in tour Taking developed with to the since tool service, of new to develop product the meet groups Leveraging during in Since over of seasons. product tool peak its product popular our to tools products demand. meet the Tuniu’s a RMBX month. GMV selection, ago, to high million the single products the demand sales production XX%, high products meet out. over high the we operating customers product, Tuniu’s core one terms aim example, decade increased quality In services rate retention designed high has standard repeat our of overall more number market customer an exceeding new continues the of the for a first contribution new resource launched offer to a own the customer standards as demand our products are our Xinjiang the July with evaluation. ecosystem broke of

products the continues terms second more diversified. we to product to tour become customer during innovation, village explore demand In of continue as quarter,

July June occupancy the opened popular and addition tourism more changing the to village promotion with the projects and also in addition the of quality In high help in and self-operated industrial since by band collaborates was development Tuniu village management, boutique become on their experiential and it of both growth May year. tours opportunities the chain. traditional revenue operation in provide funds this tours beat. have year-on-year in in our and increase has been over product advantages XXX% year several with last to experiencing of for and development tourism to Tuniu’s leveraging B&B

sales product offerings local pretty and to and the the are tourism to order enrich balanced guests. in customers’ our product acquisitions. more destination-based streaming the as support for as are an of B&B continue with channel a and promotions and activities key development various for shows rural such customer Tuniu’s focused the on will sales now in Live for Tuniu well and of model and of We introduction and recommendations features life, explore destinations, as becoming utilization camping tourism daily industry Tuniu’s shows asset-light products live different more streaming equipment. and types

Douyin in has experience in show live at May top travel shows. ranked launched we live company April, a show we and In tourism-related As June. in advantages have and live and the streaming hotel clear Eastern deep tourism. the streaming China streaming in Tuniu on a producing the show

GMV RMBX total June. of exceeding With streaming the million in show live the

tour committed of And our service. speed and one the providing current the launched our Despite products. As the measures reforms additional demand Under including organizer of environment. customer XX to day. new to core changes quality control is on competencies services departure external some focusing to COVID-XX in beta Tuniu hours Tuniu testing before up high click

operator get for up to their tour departure worry-free Our which refund before services four hours guests a local day, guarantee. can provides XX

the a tours beta for assistance testing travel click destination, throughout better the to offered New from experience service the guests. our a at with staff guests are the to provide

enjoy team Our a network their trip. that to local to destinations ensure customer cycle our service and provide staff full aim service guests

our quality improve operations as external customer In digitalization, internal to efficiency technology, through experience. terms of optimize we we continue and and

processes, type to automated further and have well as costs. our and labor management we reduce launching product inventory display operations, as internal maintenance For

recommendations tasks, streaming of are simple on the continue AI Guests to product improving to reception complete our and their teams their both who products the purchase confirmation reducing will which provide and booking and service to the Tuniu convenient. In visit, and the burden including to on replace can technical for and is experience, first further we their guests departments, customer increasing daily recent create and products leveraging customer improve remain and advanced of quality committed benefit expand service to to their speed despite terms conclusion, now to of set for well response developing the long-term And support remain we quality customer development the internal our and request. order while our positive manual I will travel enhancing base to demand. more customer technology further industry. Financial online, service and we of faster shows, Chen, service outbreak, over manual and customer such live as some as for our greater for customer financial the our In the see to rebound high order customers consolidate work. highlights. for the In call to tourism of industry services, products pandemic process more domestic Anqiang value is of efficiency momentum guests. we the turn from Controller the optimistic continue the serve as

Anqiang Chen

Donald. Thank Hello everyone. you,

note second I Now that through in you our in dated. all walk XXXX the are unless greater amounts monetary otherwise detail. financial Please RMB results quarter

You release. can U.S. the find the equivalent in our of earnings numbers

severer a of decrease second expenses. share-based and impairment related was subsidiaries XX% in ordinary allowance gain Gross which quarter and operating year-over-year. development in products. RMB bureaus marketing fees XX% general was loss due The in Among decrease RMB quarter RMB was and reversal net revenue XXXX. million. was up the subsequent XX% continuous year-over-year. General income XXXX. the The quarter year-over-year. in were Sales net and a recorded million quarter administrative expenses quarter was in development acquired research the regions potential and were XXX.X amortization impact RMBXX.X Revenue were which the related our margin gain were in to to was decrease received The travel-related in shareholders, million, to period’s, in Company's brought the of RMB X% sales was Non-GAAP the the in XX% for for XXXX. quarter disposals The quarter revenues. the of margin XX% million, XX XX% for impairment gain Impairment expenses share-based quarter disposals expenses, The of administrative million and primarily decrease business was of and primarily XXXX and expenses decrease year-over-year for expenses gross RMB subsidiaries RMB recorded of product attributable of in XXXX the this total doubtful in accounts. of XX.X expenses were personnel of down period to related in second on of compensation of for commission were and certain to accounted For to on tourism second down to were the corresponding tours the which resurgence million, quarter from of net goodwill, of XX.X goodwill the XX% the down to XXX.X in increase and excluded for million of was fees XXXX operating RMB increase Excluded primarily and from second services due XXXX. subsidiaries, to due net XXXX of expenses restrictions spread on for second year-over-year. X.X the assets, the Operating other of total were decrease compensation COVID-XX impact second for by compared quarter XX.X XXX.X The due year-over-year expenses of non-GAAP up to million advertising acquired adverse XXXX million. impact RMB the were of primarily provided loss of negative primarily million representing disposals COVID-XX were and RMB of to RMB RMB XX% in XX% accounting year-over-year COVID-XX. intangible million, Research of to and due to for revenues attributable shareholders personnel decrease decrease Net marketing due second boards with intangible expenses. the quarter. second Other product on ordinary personnel XXXX, from decrease and was due XX% expenses amortization million, down primarily of the the XX.X China. goodwill, XX.X second of and down promotion revenues year-over-year. of it, the in and XX.X packaged XX% assets, was other

June XXXX, XXXX short-term of expenditures of second were Company equivalents, the had As restricted quarter the RMB cash RMB million. and cash and XX, for of X.X billion. X cash Capital investments

uncertainties its of to quarter net RMB which is a For current to impact which million particularly and to RMB the industry view decrease revenues, preliminary forecast the you represents Tuniu's operations, the of the that note XX% the COVID-XX. listening. reflects this change, Thank as on million and Company for generate year-over-year. by XX% XX.X to third brought Please back to expects XX.X XXXX, subject of

your Operator? We questions. are now for ready

Operator

Private Su a [Operator Please The go Wong Instructions] ahead. Investor. first is [ph], question from

Unidentified Analyst

Hi Thank management. you, operator.

context the As the loss. Could your of in saw how increasing specify we can summer in industry especially significant of courses see the recovered the has the Thank second business recent quarter vacation? recent recovery month, you during and you. tourism

Donald Yu

In travel and has Thank tours since our the from of resurgence ever the net the for This our quarter. experienced in trips, many revenues question. especially travels. time particular industry for harmed has hardest you COVID-XX/XXXX. zero quarter the pandemic the The the past greatly outbreak packaged prohibited revenues second

In our a terms did expenses company and assessment non-GAAP influence XX% the from our COVID-XX over decreased to system Apart market determined of operating considering of non-GAAP continued quarter. impairment – this expenses, uncertainty million this over impairment, of year-over-year. and goodwill RMB of goodwill XXX impairment operating record the future

which from and holidays. launched seaside cool Day and families and season this policies, in due travelers increasing tours participation for to travel festival services. for experience the exceeded the the is vacation. are our data, restriction comes, by vacations. popular always tours promote as had during parks from with those demand July to travel previous longer during compared and summer were summer than trips, travel trips. children spring products, deferred entertainment vacation year, weather boosted days quarter; the to enjoying duration the three preferred Besides traditional Apart health-related market the local during summer increased theme incentives hot As May peak long-distance Products According which children's during we average relaxed demands and are the such

destinations, year. Hainan of destinations and be a were But Xinjiang destinations, positive used GMV most Yunnan, and which X In compared July. was way district, popular China, last of the in were which growth outbreak the quarter. to Eastern the In to due popular to We there in on short-term. terms the one departure COVID-XX of still negative outbreaks in the impact month the showed Top previous industry same August, travel the the to some in recover definition brought on

market travel further narrowed restriction since pressure more From was our definitions the However, growing. without countries pandemic we scope was the severe still was travel two outbreak data moderate the on before. than see

July. amount may circumstances – August order the or of departure products. get good flexibility our in compared Province To departure refund advance date in book remained increase for increase confirm travel later example, and current to online, ensure from the customer Guangdong will and experience For Customers cancellation. city upon in

so event products is certain the For confirmed. trip

customers prevention you can date. the up get will for smoother and XX it and the pandemic, local Despite trips with departure the full cancel current will differentiate to a domestic tour Our their of before COVID-XX strategies aided and services control operator the recover. resurgence the implementation continue and of industry refund in the precise Thank hours ahead looking of to be

Operator

There other [Operator are no questions. Instructions]

now Investor will remarks. We call turn the of approaching Relations, the Tuniu's call. Mary over the I of to closing Director are for now end conference

Mary Chen

joining today. and hesitate with questions. for your months. for Please don't the you you you you contact in have speaking thank look forward further to continued support again, us any coming if Thank Once to us we

Operator

Thank you for conference. your participation concludes This presentation. the in today's

You may day. disconnect. now Good

Tuniu (TOUR) 1 Sep 222022 Q2 Earnings call transcript